Private Companies Among Fujian Dongbai (Group) Co.,Ltd.'s (SHSE:600693) Largest Stockholders and Were Hit After Last Week's 15% Price Drop

Key Insights

The considerable ownership by private companies in Fujian Dongbai (Group)Ltd indicates that they collectively have a greater say in management and business strategy
Fujian FengQi Investment Co., Ltd. owns 53% of the company
11% of Fujian Dongbai (Group)Ltd is held by insiders

To get a sense of who is truly in control of Fujian Dongbai (Group) Co.,Ltd. (SHSE:600693), it is important to understand the ownership structure of the business. We can see that private companies own the lion's share in the company with 56% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As market cap fell to CN¥2.8b last week, private companies would have faced the highest losses than any other shareholder groups of the company.

Let's delve deeper into each type of owner of Fujian Dongbai (Group)Ltd, beginning with the chart below.

ownership-breakdown — SHSE:600693 Ownership Breakdown April 19th 2024

What Does The Institutional Ownership Tell Us About Fujian Dongbai (Group)Ltd?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Institutions have a very small stake in Fujian Dongbai (Group)Ltd. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

earnings-and-revenue-growth — SHSE:600693 Earnings and Revenue Growth April 19th 2024

Fujian Dongbai (Group)Ltd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Fujian FengQi Investment Co., Ltd. with 53% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 7.2% and 2.5% of the shares outstanding respectively, Wenyi Shi and Xia Shi are the second and third largest shareholders. Note that the second and third-largest shareholders are also Chief Executive Officer and Member of the Board of Directors, respectively, meaning that the company's top shareholders are insiders.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Fujian Dongbai (Group)Ltd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

It seems insiders own a significant proportion of Fujian Dongbai (Group) Co.,Ltd.. Insiders have a CN¥310m stake in this CN¥2.8b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

With a 30% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Fujian Dongbai (Group)Ltd. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

We can see that Private Companies own 56%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Fujian Dongbai (Group)Ltd better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Fujian Dongbai (Group)Ltd (including 2 which don't sit too well with us) .

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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